Systematization in Business

Systematization in Business

Systematization in business is a set of principles and methods that determine the process of performing activities and tasks in a company. In every business, there are frameworks, policies and work and business methods, based on which key processes are carried out in an orderly and integrated manner. Systematization is responsible for creating frameworks in every business. Systematization process is related to business components.

Types of systematization in Business

Inventory
Support
Educational and Evaluation
Recruitment
Sale

Classification of Systematization in Business

1- Soft Systems that include people and ideas and the methods used by employees to do things.
2- Hard Systems that are related to the physical equipment of the business and increase the productivity and efficiency of the company.
3- Information Systems that include information technology processes and collect information related to business operations in order to compare them and provide the best methods.

Advantages of Systematization in Business

– The main processes of the company do not rely on one person.
– Maintaining the organization’s achievements over time.
– Reducing human error in performing processes.
– Knowledge management.
– Simple access to information and the possibility of data analysis.
– Managers focus more on business development instead of controlling processes.

1. Non-Reliance of Business on Individuals

Entrepreneurs should develop guidelines for the exact way of doing things so that the business can run its course without relying on them or anyone else. Business systematization is the method of replacing routines and processes with people, which has given stability to the business. This method increases managers’ focus on the development of other parts.

2. Consolidation of Achievements

Today, businesses that use systematization have a better chance in competitive markets. While in businesses without a system, all achievements may be lost and the business may fail.

3. Reducing Human Error

Reducing errors and transparency of functions is the most important reason for designing business systems. In systematization, the role of human factors decreases and the possibility of human errors decreases.

4. Knowledge Management

Knowledge management is one of the important parts of business, and the company may face problems if one or more of the people who work in the company leave. Systematization creates personality independence. in such a way that he/she can travel his/her way without any problems despite the presence of people.

5. Facilitating Information Management

The information of managers and employees in business is done by systematization. This information can be tracked and analyzed.

6. Increasing the Focus of Managers

By using the systematization method, managers who think that they should do most of the work themselves, delegate part of the work to employees and focus more on business development.

Steps of the Principles of systematization in Business

First Step

At the beginning of the systematization process, it is very important to take advantage of the experiences of employees. Employees who work in our field of activity have more detailed information about their duties.

Second Step

After defining the processes, we choose responsible for them. The person responsible for the process is the one who has the commitment to finish it. For this, process assurance is required.

Third Step

If we are thinking of increasing the productivity of the system, the better way is to start working with a system. Designing an ideal system is an ambitious goal at first.

Systematization in Reducing Costs

The systematization method reduces costs by 30 to 50 percent by reducing risks and improving operations. Roughly, the average systematization increases productivity between 20 and 30%, sales efficiency by 5.12% and the speed of processes between 25 and 40%.

Up To Sum

By following the principles of systematization, we can assign the tasks that exist in the business to others and ask them to assign smaller tasks to the employees, and in addition to their tasks, we can check the tasks that we have entrusted to others.
When we are at work, instead of thinking, we plan for the future of the organization and identify better factors to control projects. Because we have a comfortable mind and all the tasks have a responsibility to do the tasks, we can not go to work for a few days and instead go on a trip and have fun or plan to start a business.